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9 Sep 2014
USD on course to secure a ninth consecutive weekly gain - TD Securities
FXStreet (Łódź) - The TD Securities team of analysts remark that they are still bullish on the broader outlook for the USD, although they admit being concerned about it looking overly stretched.
Key quotes
"USD is looking a little over-extended—overbought on the charts and in terms of historic precedents."
"We highlighted yesterday that over the past 35 years, uninterrupted runs of weekly gains and losses in the USD have tended tend to last roughly eight weeks on average before a correction sets in."
"On that basis, we are right in the window for a dip of some sorts in the USD—especially as seasonal pressures for a USD dip (the USD generally adopts a softer profile between now and early/mid October)."
"We are not calling time on the USD rally just yet but we do think it wise to recognize the potential for a snap back in the currencies in the next few weeks and position accordingly."
Key quotes
"USD is looking a little over-extended—overbought on the charts and in terms of historic precedents."
"We highlighted yesterday that over the past 35 years, uninterrupted runs of weekly gains and losses in the USD have tended tend to last roughly eight weeks on average before a correction sets in."
"On that basis, we are right in the window for a dip of some sorts in the USD—especially as seasonal pressures for a USD dip (the USD generally adopts a softer profile between now and early/mid October)."
"We are not calling time on the USD rally just yet but we do think it wise to recognize the potential for a snap back in the currencies in the next few weeks and position accordingly."